Pet ownership

Number of U.S. households that own a pet Dog: 56.7 million Cat: 45.3 million Freshwater fish: 14.3 million Bird: 6.9 million Small animal: 6.9 million Reptile: 5.6 million Horse: 2.8 million Saltwater fish: 1.8 million Source: American Pet Products Association

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If someone had told Victoria Schroeder several years ago that people would pay for dog day care, the new small-business owner probably would have laughed.

But this week, Schroeder and her two sisters opened just such a concept. Dog Days at 4060 S. Grange Ave. offers boarding and drop-in day care.

At a time when people are spending more money than ever on pets, Schroeder said she’s optimistic about her chance for success.

“The whole idea grew out of us having to find someone to board our dogs on the spur of the moment and not being able to find someone who could take them,” she said. “We did our research, and this is really a trend moving to the future.”

A recent survey by the American Pet Products Association estimates 68 percent of American households own a pet, which equates to 82.5 million homes. That number has grown from 56 percent 25 years ago.

Annual spending in the pet industry hit an all-time high last year, surpassing $53 billion, and industry experts expect that trend to continue through this year, according to the association’s annual report.

The strongest growth was in pet services at $4.16 billion in 2012, a 9.7 percent increase from the previous year.

Bob Vetere, the association’s president and CEO, said it’s a growing trend.

“Increased high-end grooming services are fueling new growth in the high-income end of the category along with increased use of all services,” said Vetere, predicting more growth in the coming year.

Doting on dogs

Schroeder and her sisters, who own a combined seven dogs, developed the Dog Days concept. They included fiberglass kennels, inside and outside play areas and rubber flooring.

“We have times when it’s hard to get home during the day, you may be traveling or have to go to a training class,” Schroeder said. “That’s our niche. They can come out here, and there will be lots of people to play with the dogs.”

It only makes sense that people who love their dogs will go to places that are dog-friendly, said Steve Hildebrand, owner of Josiah’s Coffeehouse and Cafe. His restaurant invites customers to bring their pets to the outdoor seating area, where he has biscuits and water bowls for the dogs.

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“We have a lot of fun with it,” said Hildebrand, who is a dog owner. “We put pictures of dogs up on our Facebook page, and people love it.”

People who own dogs are often busy and enjoy places where they can spend time without having to leave their pets at home, Hildebrand said, adding that the approach builds customer loyalty.

“People want to have a chance to spend more time with their dogs,” he said. “It’s surprising to me how much business this has brought.”

Ellyn Suga worked at an upscale pet store in Missoula, Mont., while attending college. When she returned home to Sioux Falls, she researched the idea of opening a shop here.

“I became a pet owner two years ago, and I felt like there really was a need for a more service- and education-based approach,” said Suga, who brings her labradoodle to work. “It’s about the service and building that relationship and trust for your pet’s health.”

Late last year, she opened Shop Dog, a retail boutique with high-quality dry dog food and treats, plus other pet items in The Bridges at 57th retail center. Business has been good, with many people coming in regularly for brands of dog food that aren’t carried in standard pet stores, she said.

Suga said she’s looking into expanding her business with a website and delivery service.

“I see a lot of customers who may be in their early 70s and late 60s, and they say that ‘The dog is our child right now,’ ” Suga said. “I think people are willing to pay a premium to have a healthy pet who will live a healthier and longer life.”

Startups grow

About nine years ago, Keli Bolstad started pet sitting in her spare time. The demand grew so great that nearly three years ago she quit her day job and opened Pet Pals. Right now, it’s a family-operated business, but she has enough clients that she’s considering adding help.

The business keeps growing, moving from basic pet care for pet owners who are out of town to additional services, such as helping families select a pet and mentoring them through the first months of puppy life. She also has a pet taxi service, driving pets and sometimes their owners to veterinarian appointments and shopping for pet food and products.

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She has seen her clients place an increasing importance on the role of the pet in the family.

“It warms my heart to see the way that people embrace their pets,” Bolstad said. “If there’s a better job than coming into a home and seeing wiggling butts, I don’t know what it is. There’s always someone excited to see me at the other side of the door.”

Jolene Loetscher and her husband, Nate Burdine, started DooGooders, a pet waste-removal business, in the fall of 2007. They expected it to be a small side business with a little supplemental income. Since the start of 2008, they have seen their sales grow by more than 750 percent.

“More and more people are getting dogs, and they are getting busier,” Loetscher said. “People want to be taking their time to have fun with their dogs, not to clean up after them.”

The company has a full-time manager and a seasonal staff of eight employees who pick up dog waste, doing about 1,200 cleanings a year. They take care of cleanup for older people, people who are too busy to do it and an increasing number of people in their 20s and 30s who consider their pets to be their children, she said.

The company also is the exclusive regional provider of Poo Prints, a service that uses DNA to identify which dog owners are not picking up their pets’ waste on rental properties. So far, the company has swabbed 600 dogs for DNA and works with 11 major commercial properties in three states.

“We’re poop professionals. We can identify our own dogs’ poop, but it’s hard to argue with DNA,” Loetscher said. “It’s been a tremendous growth opportunity for us.”

When graphic designer Lori Schnabel started fetch! Sioux Falls’ Pet Magazine, she was in the process of looking for a job. An animal lover, she decided instead to create her own work, starting a magazine that targeted pet owners in the Sioux Falls area.

She publishes online and distributes 4,000 copies quarterly to subscribers and businesses. Pet owners love their animals and like to read stories about pets and pet products, she said.

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“It’s been a great adventure, and the great support we’ve had from local businesses has been amazing,” Schnabel said.

Pampering pets

Other businesses are retooling their focus to offer more services for pets.

Sioux Nation Pet Clinic evolved about 15 years ago from a Sioux Nation company that was founded to offer feed and veterinary care for farm animals.

When the company started offering basic vaccinations for dogs, general manager Brian Swenson said demand was staggering.

“People would just line up around the building to have their shots done,” he said.

The company began to offer more services for pets, eventually opening a clinic for small animals. It now has two small animal vets and will be adding a third next year.

Swenson said the trend among veterinarians nationwide is to add grooming services. Sioux Nation has added two pet groomers to its Sioux Falls clinic in less than three years. The company plans to expand its building later this year to provide another exam room and more space for the growing grooming business.

“It wasn’t an ‘if you’re going to do it,’ but a question of when,” Swenson said. “You have to do it.”

Pet stylist Jennifer Biggins said she has seen increased demand since she opened her Paws & Reflect Pet Grooming in 2009. Her four groomers are often scheduled weeks in advance for appointments for cats and dogs.

“It’s a fairly recession-proof business to be in as long as you keep up with your education and take good care of the health of your dogs,” Biggins said. “We have a good customer base.”

Biggins is looking into expanding into dog day care. She had planned to move into a larger building but had to put the move on hold because one of the tenants didn’t want to have dogs next door. She’s looking for a new location.

Along with basic grooming services, she offers high-end dog cuts and styles for specific breeds. She trains to keep up with ever-changing standards and technology.

Many of her customers want special perks for the pets that are important to them, she said. Every dog that comes for grooming gets a blueberry facial, a cleanser that removes dirt and tear stains.

“It’s something fun to do that is different,” Biggins said. “People like to pamper their pets, and this is a little extra thing we can do to give each dog a little extra zip.”